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OIC301C: Introduction to Spreading

Course Objective:

The objective of the course is to introduce the basic characteristics of vertical spreads, the differences between bullish and bearish call and put spreads the risks and rewards of the strategies and explain the primary motive of using spreads.

Who Should Take This Course:

Advanced students

Course Description:

This class will introduce you to the concept of "spreading". We will cover the use of basic bullish and bearish call and put spreads - i.e. simultaneously purchasing and writing calls (or puts) with different strike prices. We'll investigate how and why the potential risk and reward profiles for these strategies differ from those of simple long calls or long puts. You will also see what might motivate an investor to use simple bull or bear spreads.

Course Chapters

Chapter 1 - Introduction

Introduces the user to the basic characteristics of vertical spreads with graphs, examples and terminology.

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